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NEW YORK (AP) — PepsiCo plans to jump into the premium bottled-water market with a drink called
Om, following the popularity of Coca-Cola’s Smartwater.

The soda and snack-food company, which also makes Aquafina bottled water, plans to launch the
line next year, according to the trade publication
Beverage Digest. PepsiCo Inc. so far has been on the sidelines of the premium water
segment, which includes brands such as Evian and Fiji.

A representative of PepsiCo, based in Purchase, N.Y., declined to comment or provide any
details.

Coca-Cola and PepsiCo have been diversifying their drink portfolios as Americans cut back on
soda. Bottled water has been growing in popularity over the years, but the bulk cases of bottled
water sold in supermarkets typically aren’t as profitable as other branded drinks.

Premium bottled waters are different, however, because people are willing to pay more for them.
Whether there’s any difference in the quality of various bottled waters is up for debate. For
example, Coca-Cola’s Smartwater and its cheaper Dasani water both are made from municipal sources,
or tap water. But the Atlanta-based company says Smartwater, which comes in distinct cylindrical
bottles, is purified differently.

Sales volume for Smartwater is up 16 percent for the first half of the year, according to
Beverage Digest.

Notably, Coca-Cola and PepsiCo aren’t the biggest players in the bottled-water category. That
distinction goes to Nestle, which owns brands including Deer Park and Poland Spring, and has nearly
a third of the market.